Issues Concerning Investing in High-yield Bonds by FSLIC Insured Depository Institutions: Hearing Before the Subcommittee on General Oversight and Investigations of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, One Hundred First Congress, First Session, March 2, 1989 |
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11 thrifts Altman assets in high bank loans BARNARD based capital requirements billion BURNETT Carroll Hubbard Chairman HUBBARD commercial loans Committee Congressman corporate debt corporate takeovers credit analysis credit cards default rate diversification Edward Altman expertise Federal Home Loan Federal Reserve federally chartered thrifts federally insured thrifts FHLBB financing FOGEL FSLIC funds GAAP net worth GILLMOR guidelines hearing high yield bonds Home Loan Bank insolvent institution's interest rates investment grade bonds investment in high investors issuers junk bonds LBOS leveraged buyouts limitations Loan Bank Board loss reserve ment mergers and acquisitions mismanagement officials percent of assets PHILIPPI regulations regulatory returns on high risk based capital risks and returns S&Ls Savings and Loan subcommittee Thank thrift bulletin thrift industry thrift institutions thrift investments thrifts we visited Treasury unsafe and unsound WEFA yield bond investments yield bond market yield bond portfolio yield bonds issued
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Page 35 - In coordination and consultation with the Securities and Exchange Commission, the Federal Home Loan Bank Board, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Savings and Loan Insurance Corporation, the Federal Deposit Insurance Corporation, the Secretary of the Treasury and the Secretary of Labor...
Page 23 - Includes the Office of the Comptroller of the Currency; the Federal Deposit Insurance Corporation; the Federal Home Loan Bank Board; the...
Page 43 - FHLBB Federal Home Loan Bank Board FSLIC Federal Savings and Loan Insurance Corporation...
Page 40 - Currency, the Board of Governors of the Federal Reserve System, the Federal Savings and Loan Insurance Corporation, the Federal Deposit Insurance Corporation, the...
Page 92 - It has not been fully reviewed within GAO and is, therefore, subject to revision. Recipients of this draft must not show or release its contents for purposes other than official review and comment under any circumstances. At all times it must be safeguarded to prevent publication or other improper disclosure of the information contained therein.
Page 3 - SEC. 20. (a) In order to enable the board to carry out the provisions of this act, the Treasury Department, the Comptroller of the Currency, the Federal Reserve Board, and...
Page 92 - This draft and all copies of it remain the property of, and must be returned on demand to, the General Accounting Office.
Page 31 - Mr. Chairman, this concludes my prepared statement. We will be pleased to answer any questions you or the other committee members mavhave.
Page 84 - FHLBB's guidelines also state that before investing in high yield bonds, the board should thoroughly analyze the risk and returns of these investments compared to alternate investments. It should also retain competent and qualified staff to monitor and analyze the portfolio on a continuous basis or retain consultants to manage the portfolio when in-house expertise is inadequate or the size of the portfolio does not justify hiring in-house specialists. ~ The thrift institution should adopt diversification...
Page 93 - So far, high yield bonds have been attractive investments for thrifts compared to many alternative investments, and high yield bond investments have not contributed to the thrift industry's current problems. However, the higher yields on these bonds carry higher risks compared to traditional thrift assets such as residential mortgage loans. In addition, the high yield bond market, in its present size and form, has not been tested by a recession. A severe economic downturn might increase bond defaults,...